Now that I am closing in on 70, I find that I talk to myself and rather enjoy it. For a while I would watch folks in airports all talking to themselves when I finally realized they were talking to someone on the phone screwed into their ear. I am convinced it is no way near as much fun as what I do.

While chatting with me, I have uncovered (actually just read somewhere or been told by a semi-reliable source) two facts that get me all worked up but no one else seems to care. See what you think.

On June 25, 2012 the following headline was seen: “Shaw Industries breaks ground on New Nantong, China manufacturing facility.” Shaw Industries broke ground on a 200,000 square foot carpet tile plant set to open in one year. In full operation, the plant will be able to manufacture more than 50 million square feet of carpet tile.

It is true that Shaw has opened its third showroom in Asia and plans at least six more showrooms or sales offices in the region. And, it is true that there are a gazillion folks living in China and the neighboring countries. So having a manufacturing facility right in China takes away the six to 12 weeks for shipping from the U.S. They will become the preferred U.S. company for carpet tiles.
But will any of these products come our way? The cost structure would suggest not. About 80 percent of carpet cost is in the materials to make the product; the labor is a very small part. (Those products that have a high labor component are the products where low cost, inexpensive labor markets, can really impact the total cost of the product.)

But I get nervous anyhow. I just know how fast the safe, secure and decidedly American furniture manufacturers were lulled into complacency and within five years of Chinese manufacturers discovering where America was, their market was trashed. Talk about an economic tsunami hitting them but that is what happened. Of course the furniture industry gave such terrible service, the imports got to the dealer almost as fast as U.S. manufacturer delivered the stuff from North Carolina.

There is no cost pressure on carpet. It is the best buy of all flooring types and Shaw is not going to hurt their domestic manufacturing by sending tiles they make in China to the U.S. But a whole bunch of canny Chinese entrepreneurs are now going to know how to make carpet tiles — they can serve their own market and also ours.

The fact is we are a global industry and imports continue to outpace every product sector with one exception — broadloom carpet and carpet tile. Look what a short time it took for wood flooring to come into our country; maybe carpet will be next — and sooner than you think.
So if you order some carpet tile and the box has printing you can’t read: Call me. The flooring world is about to change.
Next thing — Stainmaster polyester. I hear voices.
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Jonathan Trivers, a regular contributor to Floor Covering Weekly, is also the author of the marketWise section of FCW’s Statistical Report. When he’s not writing he’s talking — to flooring groups throughout the country and Canada.